- US spot Bitcoin ETFs experienced combined outflows of US$1.22 billion between Monday and Friday, with only Tuesday recording net inflows of US$102.7 million.
- Major funds ARKB, IBIT and FBTC led the outflows with losses of US$289.5 million, US$278.6 million and US$160 million respectively.
- JPMorgan analysts suggest crypto-native investors rather than institutions are behind the sell-off.
- The Fear and Greed Index indicates retail investors remain hesitant to re-enter the market, with some analysts believing retail won’t return “for a long time” amid elevated volatility and thin liquidity.
Last week wasn’t a good one for US spot Bitcoin exchange-traded funds (ETFs). A combined US$1.22 billion (AU$1.87 billion) left the funds between Monday and Friday, with Tuesday being the only day to see net inflows — just US$102.7 million (AU$157.8 million).
While most ETFs had several days with zero net flows, ARKB, IBIT and FBTC saw net outflows of US$289.5 million (AU$444.9 million), US$278.6 million (AU$428.2 million), and US$160 million (AU$245.9 million), respectively.
Despite the outflows, data show that these ETFs still hold 1.35 million BTC — roughly 6.4% of the total supply — currently valued at about US$150 billion (AU$230.5 billion).
The outflows come on the back of a rough week for digital assets. Bitcoin — which hit an all-time high of US$126,198 (AU$193,941) on 7 October — dropped as low as US$104k (AU$159.8k) last week, but has since recovered somewhat, climbing back above US$110k (AU$169k) at the start of the week.
Although the sell-off could suggest institutions are unloading their stash, JPMorgan analysts believe that’s likely not the case — instead, crypto-native investors appear to be the ones selling.
With the Fear and Greed Index firmly in “Fear” territory and retail investors — especially long-term HODLers — selling, the average investor may not be keen to jump back in.
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The Week Ahead
Cedric Youngelman, host of the Bitcoin Matrix Podcast, said on Crypto Twitter that he believes retail investors won’t be “coming for a long time.”
Some in the community pointed out flawed thinking that might stop people from investing in Bitcoin. Many still assume the price is already too high or that you need to hand over a full US$110k to buy BTC.
As traders looked for signs of stability, Daan Crypto Trades noted that Bitcoin’s weekend price action was once again gravitating toward the CME futures close — the so-called “CME price magnet” effect. He added that volatility remains elevated due to thin liquidity following the recent market flush, setting up what he expects to be an eventful week ahead.
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